Today’s upcoming FOMC minutes at 2:00 PM EST certainly has many gold traders sitting on their hands during the U.S. session. It looks as though December gold futures are taking a nap, only posting a 66 tick daily range.

So, what is on tap for later on, and how can we grab a quick profit?

FOMC Minutes: What To Expect

The FOMC minutes are the script from the last FOMC meeting. While the FED’s interest rate announcement jolts markets around the globe, the minutes are seen as a roadmap for future monetary policy.

Traders will be looking for hints at what is likely to happen to U.S. interest rates at the September meeting. As I have covered in-depth, a rate hike in September is a formality. Also, an unwinding of the FED’s balance sheet is another topic of debate.

Here is what we are looking for: Size and Scope. Will we see an atypical raise in rates or dumping of “toxic” assets? Or are we looking at a quaint ¼ point raise of rates? Anything that suggests a move out of the ordinary for the FED in September will likely move markets.

Tread lightly, and watch the money management.

Scalping Setup, December Gold Futures

As I mentioned earlier, December gold futures are taking a break at the moment. Currently, December gold is trading inside of yesterday’s range.

December Gold Futures Daily Chart-Is There A Trade?

Below are a few technicals worthy of note:

• Tuesday’s session low of 1272.7

• 62% Fibonacci retracement of current wave 1272.8

• Bollinger MP at 1268.6

• 13 Day SMA at 1263.6

The Trade: This is an ultra short-term scalping trade on the release of the FOMC minutes. Timing is everything here, and we are looking for maximum participation. A break below Tuesday’s low and the 62% Fibonacci number should work for a fast 10 ticks:

• Entry: Sell December Gold futures at 1272.6

• Profit Target:     1271.6

• Stop Loss: Variable, do not exceed 1:1 risk/reward. If elected, this will be an extremely hot zone. The potential for a fast, large retracement is present. Play it tight.

High levels of participation should garner a quick 10 tick profit from this short sell. There will be a bulk of orders at 1272.6. If you are going to take the scalp, I recommend getting your orders in the queue now.